Archives for January 2020

There were lots of economic news releases today. For me, the idea was to wait for them to come and go and see which way the market was going to move as a result… but not before.

The AUDUSD was meandering up and down, then broke its simple upper trendline just before the U.S. releases. It moved up to retest the line after the news and then began to move back down.

A short was taken risking 8 pips for a potential 20 pip to our daily target at .6818. Price dropped through its Asian session low to test yesterday’s low and plunged right through it. The trade was closed at our target for a nice end to the week.

A short EURUSD at the same time netted only 4 or 5 pips…but we’ll take them.

Congratulations to Blair who nailed the AUDJPY while I was busy with the AUDUSD and EURUSD trades. I love it when former students make more pips than me – as long as they follow the rules. Well done Blair!

Good luck with your trading and enjoy your weekend!

After dovish comments by ECB President Christine Lagarde the EURUSD and its crosses moved lower. The stop losses were too expensive for me, but the AUDUSD offered a short setup risking 11 pips for a potential 32 pips to our daily target at .6833.

An entry was taken and price began to move lower. With a strengthening DXY, price gained downside momentum and our target was reached fairly quickly without any retracements.

The first area to keep an eye on was yesterday’s high and then the Asian session low. Price descended through both and the trade was closed at our daily target.

There is lots of economic news releases tomorrow so enjoy the ride.

Good luck with your trading!

Some positive economic releases early in the U.K. session brought the EURUSD buyers in and as the U.S. session got underway a top formed and a short was taken risking 5 pips for a potential 38 pips to our daily target at 1.1075.

The EURJPY was an alternative trade setup, but the stop loss was more expensive than on the EURUSD. With a cautious tone to the market today, either trade was attractive.

The idea was to ride the EURUSD down to its Asian low and hopefully down to our daily target at 1.1075 before the U.K. close. On its first test of the Asian session low, buyers stepped in and price quickly tested its Asian session high before it started to fade again.

The trade was closed a candle before the U.K. session ended to avoid any volatility going into the close as positions were liquidated. This a fifty/fifty proposition… as whose to know if the sellers are going to take control? With the EURJPY also bouncing off its Asian session low, it seemed better to take profit and come back tomorrow.

The 1.1070 level looks like it may be tested shortly and that will open the door for a test of 1.1050 and 1.1000 going forward for shorts.

The GBPUSD has found buyers below 1.3000 but the market is positioning itself for a potential B.O.E. rate cut on January 30th. Weak economic news before then strengthens the market’s bearishness, but today we saw better than expected numbers for Britain.

Shorts will be eyeing the 1.2980 level then 1.2950. A move below 1.2950 would open the door for a test of 1.2900 figure.

With the corona virus causing some fear in Asian trading, USDJPY shorts could push the pair below 109.70 where it could accelerate further to the downside.

Good luck with your trading!

The markets are giving some mixed signals today, but the USD is stronger and the Euro is weaker. As the EURUSD began to trend lower, a short was taken early in the U.K. session risking 10 pips for a potential 31 pips to our daily target at 1.1100. With pending news not far away, we took the risk out of the trade quickly by placing our stop loss lower once we were in profit… just above yesterday’s low.

Price then continued lower before stalling and moving sideways into the U.S. open. The pair subsequently moved lower closing our trade at our daily target 1.1100 figure.

Both gold and the DXY moved up today which warrants caution. Equity markets too were all up. When this is the case, it’s a good idea to be cautious and lock in profits incrementally. It’s generally better to be conservative on a Friday as many participants will be closing positions in advance of the weekend.

Good luck with your trading and enjoy your weekend!

After some positive economic news for the U.S. today, particularly the Core Retail Sales (MoM) Dec. number, the USD caught a bid tone.

A short in the AUDUSD was taken risking 9 pips for a potential 28 pips to our daily target at .6896. Price moved down to test yesterday’s high before moving lower to test its Asian session low and the trade was closed at our daily target. The Aussie dollar has been under pressure this year and a close beneath .6885 will be considered even more bearish.

There is some important economic news on Friday that can potentially affect the GBP, EUR and USD. It’s usually better to wait until 15 minutes or more after the news release before entering a trade. If you’re already in a trade, lock in profit, so as not to get closed out by news reaction volatility.

Good luck with your trading!

The optimism surrounding the signing tomorrow of the U.S. – China Trade Agreement Phase One hasn’t helped the DXY to close above 98.50 and gold continues to find buyers near $1540.

The Core CPI (YoY) met market expectation today and the shortfall in the more volatile Core CPI (MoM) didn’t cause much of a knee jerk reaction.

A similar setup to yesterday enabled us to find an entry again in the EURJPY, risking 10 pips for a potential 62 pips to our daily target at 1.2888. Price moved higher and tested its Asian session low, then moved up to test yesterday’s high where we closed the trade at the end of the U.K. session.

The U.K. releases CPI and PPI data tomorrow. BoE MPC Saunders will be speaking too. The market is looking for soft data and further dovish comments for the likelihood of a rate cut coming sooner than later. The current consensus is about 50% likelihood of a rate cut at month end.

Reaction to the signing of the U.S. – China Trade Agreement Phase One will be interesting as more details emerge tomorrow.

Good luck with your trading!